In 4 days we will potentially be over the cliff. At that point, it is going to be permissible to discuss actual, current taxes as they impact our personal investments? I understand not having allowed that sort of thing in the last few weeks, but if it becomes actual policy we will need to make actual investment/allocation decisions - no hypotheticals at all. If someone's dividend tax rate goes from 15% to 44%, that needs to be discussed, addressed, one way or another.

I don't see why not, so I expect some great discussions starting at midnight December 31st eastern time. sscritic will have a wait though a few hours since taxes will still be lower on the west coast then.

As far as I could tell from previous threads that touched on this, it is permissible to talk about things in the context of what the law says tax rates will be in 2013, right now (i.e., no speculating about changes to the law that may or may not be effected).

no, that topic was placed off limits until resolution of the cliff, rightly so I think given the uncertainty of any final deal. But it would seem to change the equation if we actually enter 2013 under the laws currently legislated.

Last edited by letsgobobby on Fri Dec 28, 2012 1:40 pm, edited 1 time in total.

It appears as though there is a strong possibility that nothing changes before the end of they year and even if there is a tweak that it might change again. So this may be off limits for a long time unless the moderators permit discussion under existing law, which I think is policy of the forum.

Alex Frakt wrote:There have been a large number of threads recently ostensibly about future tax rates, especially marginal rates. Given the current situation - that this is an area of current debate, the outcome of which cannot be foretold - such posts amount to nothing more than speculating over proposed legislation which is not an acceptable topic on this site.

Once the dust has settled and we have a set of laws upon which people can take action, we will reopen the topic.

Yes, a lot of things are going to happen quickly. The key point is "have a set of laws" which means that the legislation was passed. Until then, it will remain off-topic.

Existing law is fine.

To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

It would be very short sighted to take long term action based on what happens at Midnight on Jan 1, and I'm not sure what short term actions you could take short of calling up a bookie to place bets on when and what will finally get resolved . Nothing is happening at Midnight Jan 1 to the reduce uncertainty of 2013. Yes, the law changes, but odds are very high at least part of it will change later in the year. Which parts change and stay are still a speculative discussion. No one is going to complain about a retroactive tax reduction.

stan1 wrote:It would be very short sighted to take long term action based on what happens at Midnight on Jan 1, and I'm not sure what short term actions you could take short of calling up a bookie to place bets on when and what will finally get resolved . Nothing is happening at Midnight Jan 1 to the reduce uncertainty of 2013. Yes, the law changes, but odds are very high at least part of it will change later in the year. Which parts change and stay are still a speculative discussion. No one is going to complain about a retroactive tax reduction.

It seems to me it's more speculative to speculate that things will change, tham to discuss what is actually law at the moment. It was a little awkward this fall not being able to solicit feedback from forum members about how to handle things that might/might not occur on 1/1, but understandable because of the risks vis a vis forum policy and the neutrality the forum has successfully maintained. However, I still had to make decisions about money. You can always say laws will change, and in fact we are sure they will, but that could be true this year or any other.

Careful -- I don't think we want the board to get into a situation where its OK to give advice to people based off law that exists on Jan 1 2013 and yet a thread gets locked because someone opines that its premature to make changes based on the current law because there could be pending legislation. "Stay the course" is a key tennet around here.

I think all 2012/2013 tax/fiscal cliff discussion should be off-topic for a little while longer by invoking the "not actionable" subheading of the unallowed topics.

Since things are all over the place, I don't see how we could have a meaningful discussion.

You can only work with current information. Keep putting money in tax advantagedaccounts. That shuld be good in any case.

Choosing between a TIRA and a ROTH depends on your personal tax rates andwhat you expect future rates to be. Use the same logic for any other financial decisionsyou might want to make this Dec 31 or any other time.

The only thing that I can imagine would be permissible/appropriate is a list of what will be expiringunder current law. (Not a discussion of whether it should or not, or whether it probably will or not.)I have not kept up and did not know of the entire list. Perhaps just a link to an authoritative site,or blog, so that any discussions don't clutter up this site.